Nikkei Slips 0.9%, Japanese Investors Cautionary Ahead of Nvidia Report
The Nikkei closed down 0.9% to 49,890.32, following Wall Street's decline on Monday. Selling pressure was felt across most of the Japanese stock market, as risk-off sentiment reemerged, or investors' tendency to avoid risky assets amid global uncertainty.
StoneX senior market analyst Matt Simpson explained that market participants are returning to caution following the decline in Wall Street stocks. Investors' primary focus is now on Nvidia's earnings release due on Wednesday, as the chip giant's results have the potential to significantly impact technology stocks and the overall direction of Wall Street.
Among the hardest-hit stocks on Japan's main index, Organo Corp. fell 4.1%, M3 Inc. fell 3.9%, and Fujikura slumped 3.7%. The sharp correction in these listed companies also dragged down the Nikkei's overall performance, indicating that selling pressure is not limited to specific sectors but is quite widespread.
In the forex market, currency movements were relatively calm. The USD/JPY pair was trading at 155.29, little changed from 155.26 at the close of trading on Monday in New York. The yen's stability against the dollar suggests that, for the time being, market reactions are being reflected more in the stock market than in the currency market. (asd)
Source: Bloomberg.com
